Too Good To Be True?
Updated: Aug 15
Any goofball "tax" person can save you money on your taxes. It's very, very simple. All you have to do is send the IRS tax returns full of errors.
I see this constantly. Bad tax advisors generate big savings for their clients by taking advantage of the fact that IRS audit rates are historically low. Usually (hopefully!) this isn't on purpose. Instead, it's because they don't know what they don't know, and they do whatever "seems" right, or try to follow some plan they read about recently but didn't study in depth. And then your tax return is wrong, but it's wrong in your favor, and you save on your taxes.
So what's wrong with this? Two simple, big things. 1) It's unethical. It's not taking advantage of the law, it's just not getting caught. 2) If the IRS does catch you, bad things can happen. And if they find out that you knew about the issue, they will take you out to the woodshed.
Make sure you're working with a tax advisor that knows what they're doing, has a deep understanding of everything they recommend to you, and will be honest with you throughout the entire planning process.